MARKETING STRATEGY

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FRANCE’S
MARKETING
STRATEGY
Laura Rolka
Allyson Kappers
Ronita Farria
Tim Rittenhouse
Segmentation of Target Markets
On-the-Go Parent(s) with Young Children
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Higher income cities or suburbs with a disposable income
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Residence with more freezer space
Afford extras such as this product
Frequent Hypermarkets (prime for retailing popular products and brands
Families with working parent(s) and/or single parents
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Lifestyle allows for less time to prepare a meal
Difficult to find time for family activities except for the weekend
Ages 5-18 years old: Children and Teens
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Usually only 1 or 2 children in household
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Easier to influence parents buying habits
Adaptable and flexible lifestyles and tastes
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Athletic and active and need quick snack/meal in between activities, which is gaining
grounds in Paris
Like high quality foods (Smuckers) with American image (Uncrustables)
More likely to try American cuisine with this age
Prepackaged food industry is focusing on these tastes
CHOSEN MARKET: Ages 25-34:
Business Professionals
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Division between traditionalists and conservatives
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Main cities: Paris, Marseille, Lyon, Toulouse, Nice
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Traditionalists are getting older and more of the conservative demographic is entering into
the workforce
Paris is 2.5 times as dense as NYC’s population
Downtown business sector, government buildings, public transportation areas, etc.
More likely to try American cuisine with this age
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Likely to want a quick, convenient meal
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Want the ability to rapidly grab lunch at convenience store
Shop for quick meals at hypermarkets
Prepackaged food industry is focusing on these tastes
They have taken an interest in the American culture
Higher income regions with a disposable income
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1075 E/month = $1403.56 per month in U.S.
Standard of living in France is 9% above average in EU
Afford extras such as this product
Frequent Hypermarkets (prime for retailing popular products and brands)
Reasons For Targeting Our Segment
Consumer Behavior
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Spending patterns
 Consumption (% of household spending):
 Food, drink and tobacco: 17.8%
 Frequent convenient stores and hypermarkets
Tastes
 Peanut butter? Like peanuts, Nutella, good for your health… perhaps new opportunity for
trial
 Enjoy jams, marmalades, and cheese
 Enjoy prepackaged and/or frozen meals
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Shortened 35 hour work week
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Less leisurely lunch break
Legislation cut from 1.15 hours to 38 minutes
Eating more sandwiches, especially packaged
Don’t eat between meals, so use this as a quicker meal to keep with the tradition of no
snacking
Growth of French Labor Force
Total Population: 60,180,529
Ages 25-34: 8,302,000 (13.8% of total population)
Labor Force: 27,100,000 (45% of total population)
Ages 25-34 in Labor Force: 3,735,900
Positioning
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NOW: Uncrustables is a crustless sandwich
REPOSITION using 2 strategies
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Benefits
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Meet the benefit of convenient prepackaged sandwich
Usage Occasion
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Use for shortened lunch break or when get home late from work
Trend of rising sandwich consumption
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Build equity because unfamiliar with Smucker’s and Uncrustables
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2.4 sandwiches sold per year per person
Continue wholesome, high quality, and reliable product image
Different type of sandwich but not to take away from the
traditional French foods
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Use their jams, cheeses, and ingredient preferences (discuss in product
section)
Positioning With Other Markets
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Frozen ready made meals dominate the market
2003: 51.8% of the market
 Fits right in a sustained growth industry
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Little competition
Unilever
 McCain
 Saveurs de France
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Specialty frozen desserts and bakery products
 Some non-refrigerated
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Marketing Objectives
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We hope to penetrate our target market of 3,735,900 by 10% =
373,590 units
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We chose 10% because this product is in the Introductory Phase
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We also wanted just enough to capture the percentage that want to experience
American culture
In selling the product for $4, we hope to sell an average of 1
sandwich per person
1 sandwich (373,590 people) = 373,590 units
$4 (373,590 units) = $1,494,360 sales
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We chose an estimate of $4 because in our research, the cost of
a cheese sandwich in a restaurant is roughly $4.16
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Our sandwich is slightly cheaper since it’s purchased from the store ready
made, rather than a restaurant
Product
Size of Product
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Current size: 2 ounces= 58 grams
We have decided to keep the size of the product
the same because the French eat smaller
portions compared to the US even though we
have changed the target market.
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1 sandwich equals a meal
Color(s) of Product
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White-bread
Brown- peanut butter filling
Red- strawberry filling
Cream- cheese filling
The only thing that will change is the color of
the cheese sandwich filling from the yellowish
orange (American cheese) to the cream
(Camembert) because the cheese type is
changing.
Materials of Product
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White bread
Strawberry jelly
Jif peanut butter
Camembert- white French cheese
We have decided to change the American cheese to a
more consumed French cheese, Camembert. We will
use the already existing Smucker’s Strawberry jelly. Even
though they don’t know much about peanut butter, they
do know about peanuts, so the peanut butter filling will
stay.
Design of Products
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The design of the product will remain the same:
a crustless sandwich with ridges around the
perimeter and filling in the inside.
It will remain a frozen product.
Packaging
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Packaging materials: The packaging materials
will remain the same.
Package design: This will change to individually
wrapped sandwiches in clear wrapping with a
smaller cardboard box around it (1 sandwich per
box).
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Logistics purposes
Package colors: The colors on the box will
correlate to what the filling is on the inside.
Brand Name
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Brioche: Because they will be manufacturing the
sandwich and this will appease consumers who
support French buy local sentiments. Their
products are sold in markets and already have
brand recognition and equity with consumers.
Sandwich Prêt (“Ready Sandwich”) will be the
new product name
Manufacturing & Distribution
Brioche Pasquier & Smucker’s:
Strategic Alliance
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Definition:
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Relationship whereby two or more entities cooperate
(but do not form a separate company) to achieve the
strategic goals of each.
Advantages:
Share costs/profits of developing new products
 Gain access to partner’s channels
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Brioche Pasquier Company
Profile
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France's leading pastry and bread maker.
Makes products available to the masses through supermarkets in France.
 Including Auchan, Carrefour, Casino, Comptoirs Modernes,
Intermarche, Leclerc, Paridoc, Promodes and Unico.
Products:
 Viennese bread, buns, tarts, cakes, biscuits, pastries and fritters,
 Frozen pastries, ice cream and other desserts.
Sales:
 Cakes and pastries account for around three-quarters of total sales.
 Frozen pastries contribute about a fifth of total sales.
The company generated revenues of E496.83 million in the fiscal year
ended December 2003
Brioche Pasquier Facilities
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The company has 2 factories throughout France:
*Lorraine region of France (Eastern France)*
 Vannes region (Western France)
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Enables them to cope with product demand.
Brioche is headquartered in Les Cerqueux,
France.
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In NW France
Distribution:
Why Saveurs de France-Brossard?
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98.5% of revenues coming from domestic sales
Markets it products through Brossard Distribution (a 99.99%-owned
subsidiary) w/ distribution centers throughout France
 Refrigerated Transportation (trucks, cars, etc)
Operates in two major mass-market product areas:
 Frozen foods
 Industrial/ambient pastries
 Long-life sweet pastries (stay fresh for over 4 months)
Brossard group is present in all retailer outlets, non-retailer catering and in the
main specialist outlets
Devoted to optimizing its organization (industrial, commercial and
administrative) in a bid to position the group as a:
 Leader in specialty frozen foods
 Leader in industrial pastries.
Distribution Methods
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The company uses two distinct distribution
methods.
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Direct sales to consumers via retail outlets
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Supermarkets, hypermarkets, freezer centers and frozen
product home services.
Through merchants (for out-of-home catering),
commercial caterers, collective organizations and
small buying centers.
Distribution Facilities
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Brossard Distribution
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**Head Quarters: Northern France**
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Alpes de Haute Provence: Southern France
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Route Pont de l'Arche
27110 LE NEUBOURG
Innovatrice Gastronomie et Alimentation Legere
Zone Industrielle Saint Maurice
04100 Manosque
Franche-Comte: Eastern France
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Pikiche (Sogenale)
5 Route de Moncey
25870 Thurey Le Mont
Pricing
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Start with retail price of $4.00
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Production 0.15(4.00)= 0.60
Distribution 0.20(4.00)= 0.80
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Divided by 1.17 (VAT)= $3.42
Divided by 1.60 (Retail Markup)= $2.14
3PL Markup 0.80*1.34= 1.07
TOTAL $2.54 (cost to make/distribute)
$2.14- $2.54= 0.40 loss per unit
Expect to lose 373,590 (0.40)= $149,436 overall loss estimated
for 1 sandwich per person for 1 year
Promotions:
 4,852.55 Euro ($6,360 USD) * 4 = $25,440 USD
 $25,440 divided by 373,590= $.07/Unit
Promotion
Communication Objectives and
Overall Message
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To create awareness of Sandwich Pret among 10%
of business professionals between the ages of
25-34 who live in large French cities, primarily in
Paris and value quick, convenient prepackaged
sandwiches within one year.
Message:
Quick convenient prepackaged sandwich
 Due to sandwiches on the rise
 Shortened lunch break
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Advertising
Business Publication
Informations Enterprise
 Monthly distribution (in French)
 Circulation of 60,000
 1 Page B/W Ad
 4,852.55 Euro ($6,360 USD)
 1 Ad every 3 months (4 Total)
 Total Cost: 19,427.93 EUR ($25440)
 Introductory Phase
 Make consumers aware by using print ads
 Prefer REACH strategy rather than Frequency Strategy
 We are going to start off with ads in Business Publications
 Will move into Sales Promotion, Event Sponsorship, PR, Direct Marketing,
Personal Selling as we make profits
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